Technology companies leverage M&A for innovation and growth

Technology, media and telecommunications companies find themselves in a period of rapid change, as digital and new technologies shift borders and transform whole industries.

Technology, media and telecommunications companies find themselves in a period of rapid change, as digital and new technologies shift borders and transform whole industries. New analysis shows technology firms are increasingly interested in acquiring companies, in a bid to grow, access innovation, and expand into new segments. While merger and acquisition activity has been in a state of flux in recent months, technology investment remains one of the world’s fastest growing sectors, driven by innovation and disruption. The industry, has, in recent years, sought to leverage strategic mergers and acquisitions to acquire access to broader tools, as well as users’ data, among others. Facebook’s acquisition of WhatsApp for instance, or Apple’s acquisition of Shazam are examples of such strategic moves.

The industry remains well endowed with cash, while growing disruption in the Fintech space means that tech companies continue to eye ways of competing across traditional borders – with acquisitions of start-ups being a popular investment route. In terms of confidence the rapid growth of tech industry, market capitalisation is reflected across key indicators. Respondents’ level of confidence at their sector level for corporate earnings hit 71% in the latest survey, a massive 70 percentage point increase from the same period last year. Credit availability increased significantly too, while short term market stability was cited by 68% of respondents as improving. The industry is well positioned in terms of equity valuations / stock market outlook, cited by 46% as improving and 51% as stable.The current strong position of tech industry respondents places them in a comfortable position to consolidate, expand and access key technologies and talent – through M&A. The number of respondents that expect to pursue M&A over the coming 12 months stood at 57% in the tech industry, a seven-percentage point increase on the previous year and well above the 33% recorded in October 2013.

The tech industry has also increased its acquisition appetite to that of the wider global industry, after considerable divergence between October 2015 and April 2017. The firm notes, however, that while intentions were relatively subdued for the 2015-16 period, actual deal activity was – like much of the wider industry – booming. This year will likely see deal volume decrease by 9% and deal value by 34%.The key drivers cited by the tech firms surveyed reflect wider trends in the strategic M&A space. The top cited reasons include acquiring innovation (24%) and growing market share (also 24%). Access to new geographies and additional talent follow, at 18% and 16% of respondents respectively. Reactions to changes in customer behaviour and securing supply follow, at 14% and 4% respectively. Commenting on the sector’s M&A appetite, the authors stated, “The question of how much of today’s tech sector optimism translates into tomorrow’s done deals will be answered in 2018. Tech companies can work to realise their deal making intentions by taking deliberate steps indicated in these pages: re-evaluate their portfolio review process, take advantage of modern analytical tools, prepare for an increasingly competitive M&A market and pre-plan for integration.”

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Giants like Amazon, Google, Redbull, and H&M among others are such companies that have developed beyond their initial consumer bases by mastering their global business strategies of marketing. So, now the question is what these companies are doing out of the box that is leading them towards success.

A business will flounder without a funding source under its own debt the weight. A business runs on funding fuel. To attain funding, a business can take unusual avenues and more than one option can be used.

It has been observed that financing business startups is not so easy feat. If one can swing it, bootstrapping is the best option but no matter what, one will require small amount of money for turning idea into somewhat tangible. If funds are not rolling in yet, it’s hard to make a top notch product.

Today there is a huge amount of money in the market of start-up funding across all stages of funding. Although there are a lot of financing options for start-up businesses available but it’s up to the investor or the owner to decide which option is to be considered.

It has been observed that financing business start-ups is not so easy feat. If one can swing it, bootstrapping is the best option but no matter what, one will require small amount of money for turning idea into somewhat tangible

It has been observed that financing business start-ups is not so easy feat. If one can swing it, bootstrapping is the best option but no matter what, one will require small amount of money for turning idea into somewhat tangible

Debt financing is the cash to be repaid in the form of a line of credit, advance merchant cash, a loan, or a credit card. It involves the usual pitching to venture capital firms and investors for raising money in exchange for equity in the company.

Debt financing is the cash to be repaid in the form of a line of credit, advance merchant cash, a loan, or a credit card. It involves the usual pitching to venture capital firms and investors for raising money in exchange for equity in the company.

It is no surprise that in the current business climate of low or even sub-zero interest rates and arguably overpriced equity markets, investors are on the hunt for alternative avenues of investment. Injecting seed funding into promising young startups is one such investment that has recently grown to be very popular.

Like many professions, venture capitalists speak their own language. It’s easy to get lost in the lingo but it’s not too hard to learn some basic concepts. Here are Some Know More - http://bit.ly/2xMc1hG

Like many professions, venture capitalists speak their own language. It’s easy to get lost in the lingo but it’s not too hard to learn some basic concepts. Here are Some Know More - http://bit.ly/2xMc1hG

It is very essential that while starting your own business venture, you should properly plan before and then make required financial decisions. As in this way, you will be able to manage your money efficiently once your business starts operating. Starting a new business might bring uncertainty,

Now days, startup business owners are so desperate for tapping into the billions of pounds hovering around various establishments that they will definitely go to greater lengths for getting or presenting their business plan to the top investor.

Now days, startup business owners are so desperate for tapping into the billions of pounds hovering around various establishments that they will definitely go to greater lengths for getting or presenting their business plan to the top investor.

Many entrepreneurs think that the best and common form of raising money for their startup is equity financing. It involves the usual pitching to venture capital firms and investors for raising money in exchange for equity in company.

Many entrepreneurs think that the best and common form of raising money for their startup is equity financing. It involves the usual pitching to venture capital firms and investors for raising money in exchange for equity in company.

Nowadays, many giant organizations use business credit for growing and expanding in the global market. The most essential thing to understand is the advantages of business credit is available for other business and not for only big businesses.

Nowadays, many giant organizations use business credit for growing and expanding in the global market. The most essential thing to understand is the advantages of business credit is available for other business and not for only big businesses.

Noticeably, buying for selling cannot be a strategy to adopt for all-purpose work in public organizations. When an already acquired business, it does not make sense that it will definitely benefited with essential synergies of buyer’s business portfolio that already exists.

Noticeably, buying for selling cannot be a strategy to adopt for all-purpose work in public organizations. When an already acquired business, it does not make sense that it will definitely benefited with essential synergies of buyer’s business portfolio that already exists.

While seed funding is often the easiest round of funding to obtain, it’s also the foundation on which you’re building your entire business. Make sure it’s solid. Friends and family are second only to personal savings and credit when it comes to seed funding sources for startups.

Working capital is believed to be the life line of companies that are based on product. Without the required working capital for purchasing materials, pay your employees, or do marketing of your products efficiently, one will find your new business venture.

Working capital is believed to be the life line of companies that are based on product. Without the required working capital for purchasing materials, pay your employees, or do marketing of your products efficiently, one will find your new business venture